Yes. So I acquired it for 436,000, which was broken down by a 5% seller note, 10% my own capital. And the rest was an SBA loan that covered everything. So the loan was 387,000.
Acquiring Minds
Buying a Business to Balance Ambition and Kids
Excerpts · 475 segments · ~1:45:34 long
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And the rest came from the seller. And for me, very simple in that aspect. I didn't really need the seller note.
I could have paid everything myself and do like 1090. But I had always heard from your podcast and also other people, really, I could quote your podcast so many times. Times. So everyone please listen to as many episodes as you can that the SBA likes to see seller notes, because seller notes indicate that the seller has some skin in the game, that you should be successful, and then therefore will…
So that made sense to me. So it's like, okay, let's do a small seller note. And what I did for my structure is I actually, if you do the math, the price of the business was the price I paid for the business.
Basically, those 21,800 that I did as a seller, those 5% were like a little extra that I gave the seller to the initial price that she had asked for. So her business price was like 395,000 or something like that. And I kind of added on top the seller note and a tad more, so she would, you know, prefer me, hopefully.
And she had more like better offers. But that for me was a way of saying, okay, you know what? Seller note will be your extra.
So it doesn't hurt you to give it to me, you know, because I know some sellers don't want, especially in this buy, like market where we have so many buyers, a lot of the sellers are just not willing to do seller financing. Especially if you're retiring, correct? Like, if you're gonna get your Money in like 10 years, it's not as attractive, right?
You want your money now you're retiring. So it was a way of me of saying, hey, you know, it's not gonna hurt you. You're gonna get what you need.
But choose me, because then you'll get a little bit more and I'll be the right buyer. So I also sent her a video.
Oh, yeah? What was in the video?
I. I sent her a video saying, hey, it was so great meeting you. I am sending my offer and I really hope you consider me. And if not, it was just great meeting you.
It was so inspiring and I hope you have a wonderful time. That was it. It was just so simple. But I sent it with the loi. And I think she really appreciated that.
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